Lithium Australia in $7m acquisition

Junior explorer Lithium Australia has announced plans to acquire a Brisbane-based battery cathode developer in an all-scrip deal worth about $7.3 million.

Perth-based Lithium will issue up to 61.2 million shares to acquire Very Small Particle Company, which holds intellectual property that facilitates the production of battery cathode material.

The acquisition includes a decommissioned pilot plant in Brisbane, which is designed to produce complex metal oxides and phosphates for cathode production.

“The company anticipates immense pressure on the supply of so-called ‘energy metals’ such as lithium and cobalt in the near future, and battery recycling not only supports sustainability but may ultimately prove the cheapest source of those materials in years to come,” Lithium managing director Adrian Griffin said.

“Recycling closes the loop to create a circular energy economy; at present, the missing link is the reintroduction of recovered metals into the global lithium supply chain.

“The revolutionary cathode technology developed by VSPC provides that missing link, and the proposed acquisition would provide Lithium with the opportunity to participate in the entire lifecycle of energy metals, thereby positioning the company as a leader in the field of not just portable but also sustainable power.”

Shares in Lithium were unchanged at 12 cents each at 11:30am.